ZTO Express Q2 Earnings Down Y/Y, 2025 Parcel Volume View Lowered

ZTO Express ZTO reported second-quarter 2025 earnings of 35 cents per share, which declined from the year-ago quarter. Total revenues of $1.65 billion improved year over year.

Based on current market and operating conditions, ZTO Express lowered its 2025 parcel volume guidance to the range of 38.8 billion to 40.1 billion (reflecting 14-18% year-over-year growth) from the previously guided range of 40.8 billion to 42.2 billion (reflecting20-24% year-over-year growth).

ZTO Express (Cayman) Inc. Price, Consensus and EPS Surprise

ZTO Express (Cayman) Inc. price-consensus-eps-surprise-chart | ZTO Express (Cayman) Inc. Quote

Mr. Meisong Lai, founder, chairman and chief executive officer at ZTO, stated, "During the second quarter, ZTO further narrowed the gap to industry average growth rate despite continued industry mix-shift towards lower unit economics.  Supported by leading service quality, we achieved over 9.8 billion parcels and delivered 2.1 billion of adjusted net income. Retail volume's growth momentum remained strong at over 50% than last year and it contributed positively to overall margin."

Detailed Operational Statistics

Revenues from the core express delivery business increased 11% year over year, owing to 16.5% growth in parcel volume offset by a 4.7% decrease in parcel unit price. KA revenues, generated by direct sales organizations, increased 149.7% owing to an increase in e-commerce return parcels.

Revenue from freight forwarding services fell 22.7% year over year.

Revenue from sales of accessories, which largely consisted of sales of thermal paper used for digital waybills' printing, rose 9.5% year over year. Other revenues were derived mainly from financing services.

Gross profit decreased 18.7% from the year-ago reported quarter. Gross margin rate fell to 24.9% from 33.8% in the year-ago period.

Total operating expenses were RMB469.3 million ($65.5 million) compared with RMB405.3 million in the year-ago period.

ZTO Express exited the second quarter of 2025 with cash and cash equivalents of $1.85 billion compared with $1.71 billion at the end of the prior quarter.

Currently, ZTO Express carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Q2 Performances of Other Transportation Companies

Delta Air Lines (DAL) reported second-quarter 2025 earnings (excluding $1.17 per share from non-recurring items) of $2.10 per share, which beat the Zacks Consensus Estimate of $2.04. Earnings decreased 11% on a year-over-year basis due to high labor costs.

Revenues in the June-end quarter were $16.65 billion, beating the Zacks Consensus Estimate of $16.2 billion and decreasing marginally on a year-over-year basis. Adjusted operating revenues (excluding third-party refinery sales) increased 1% year over year to $15.5 billion. 

J.B. Hunt Transport Services, Inc. (JBHT) reported second-quarter 2025 earnings of $1.31 per share, which missed the Zacks Consensus Estimate of $1.34 and declined 0.8% year over year.

Total operating revenues of $2.93 billion missed the Zacks Consensus Estimate of $2.94 billion and were flat year over year. JBHT’s second-quarter revenue performance witnessed a 6% increase in Intermodal (JBI) loads, a 13% increase in Truckload (JBT) loads, a 3% increase in Dedicated Contract Services (DCS) productivity and a 6% increase in Integrated Capacity Solutions (ICS) revenue per load. These items were offset by Final Mile Services revenue declining 10%, lower revenue per load in both JBI and JBT, a 9% decrease in ICS load volume and a 3% decline in average trucks in DCS. Total operating revenues, excluding fuel surcharge revenue, increased 1% on a year-over-year basis.

United Airlines Holdings, Inc. (UAL) reported mixed second-quarter 2025 results wherein the company’s earnings beat the Zacks Consensus Estimate, but revenues missed the same.

UAL's second-quarter 2025 adjusted earnings per share of $3.87 surpassed the Zacks Consensus Estimate by a penny but declined 6.5% on a year-over-year basis. The reported figure lies within the guided range of $3.25-$4.25.

Operating revenues of $15.2 billion fell short of the Zacks Consensus Estimate of $15.4 billion but increased 1.7% year over year. Passenger revenues (which accounted for 90.8% of the top line) increased 1.1% year over year to $13.8 billion. UAL flights transported 46,186 passengers in the second quarter, up 4.1% year over year.

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